PORTLAND, Ore.--(BUSINESS WIRE)--Oct. 26, 2018--
Portland General Electric Company (NYSE: POR)today reported net
income of $53 million, or 59 cents per diluted share, for the third
quarter of 2018. This compares with net income of $40 million, or 44
cents per diluted share, for the third quarter of 2017.

“With the Carty settlement behind us, we can now focus our full
attention on the future,” said Maria Pope, PGE president and CEO. “In
addition to achieving solid operational and financial results this
quarter, we have made progress toward adding new renewables and
advancing several smart grid projects.”

The increase in third quarter earnings was driven by the Carty
Generating Station cash settlement. Additionally, increased wholesale
revenues and reductions in other expenses were partially offset by less
favorable weather conditions.

Company update

Carty Generating Station

In July 2018, PGE finalized the settlement with parties related to the
Carty Generating Station. As part of the settlement, PGE was paid $130
million. Of this, $120 million offset the investment on our balance
sheet and the remaining $10 million, or 7 cents per share, was booked to
administration and general income to reflect the partial recovery of
previous expenses. For the third and fourth quarters of 2018, PGE will
realize the benefit of avoided litigation and carrying costs.

2019 General Rate Case

As of September 2018, PGE has reached agreement on all revenue
requirement issues in the 2019 General Rate Case. The agreements support
rate base of $4.75 billion, a 9.5 percent return on equity, a 7.3
percent cost of capital and a 50 percent debt and 50 percent equity
capital structure. Remaining unresolved issues involve full volumetric
decoupling that would include the effects of weather, the storm
restoration balancing account and application of weather trends in the
load forecasting models. Review by the Public Utility Commission of
Oregon (OPUC) will continue until the final order is issued, which is
expected by the end of the year. New customer prices will go into effect
January 1, 2019.

Renewable Request for Proposal (RFP)

In October 2018, PGE completed the review process of the Renewable
Request for Proposal with oversight from an independent evaluator
selected by the OPUC. PGE and a developer jointly submitted a project
that includes 36 MWa of company-owned wind resources that would qualify
for the federal production tax credit, and a power purchase agreement
representing up to 83 MWa. The project was selected along with two other
projects as part of the Final Shortlist submitted to the OPUC. The
Shortlist included various combinations of wind, solar and battery
storage as well as PPA and partial ownership options. PGE requested that
the OPUC acknowledge the Final Shortlist by early December 2018 to
enable the company to execute definitive agreements with the selected
parties and allow sufficient time to capture expiring federal production
tax credits for the benefit of customers. PGE expects to finalize
negotiations by the end of 2018.

Third quarter operating results

Earnings Reconciliation of Q3 2017 to Q3 2018

(in $ millions, except EPS)

Pre-Tax Income

Net Income*

Diluted EPS **

Reported Q3 2017

$

53

$

40

$

0.44

Revenue

Electric retail price change

1

1

0.01

Electric retail volume change

(2

)

(2

)

(0.02

)

Change in decoupling deferral

2

1

0.01

Electric wholesale price and volume change

16

12

0.13

Other Items

(7

)

(5

)

(0.06

)

Change in Revenue

10

7

0.07

Power Cost

Change in average power cost

6

4

0.05

Change in purchased power and generation

(8

)

(6

)

(0.06

)

Change in Power Costs

(2

)

(2

)

(0.01

)

O&M

Administrative and general

14

10

0.11

Change in O&M

14

10

0.11

Other Items

Depreciation and amortization

(9

)

(7

)

(0.07

)

Other Items

(4

)

(3

)

(0.03

)

Adjustment for effective vs statutory tax rate

8

0.08

Change in Other Items

(13

)

(2

)

(0.02

)

Reported Q3 2018

$

62

$

53

$

0.59

* After tax adjustments based on PGE’s statutory tax rate of 27.5%

** Some values may not foot due to rounding

The following table indicates the number of heating and cooling
degree-days for the three months ended September 30, 2018 and 2017,
along with 15-year averages based on weather data provided by the
National Weather Service, as measured at Portland International Airport:

Heating Degree-days

Cooling Degree-days

2018

2017

Avg.

2018

2017

Avg.

July

2

1

7

289

164

179

August

6

1

7

238

275

182

September

61

76

62

48

132

66

Totals

69

78

76

575

571

427

(Decrease)/increase from the 15-year average

(9)%

3%

35%

34%

2018 earnings guidance

PGE is affirming its 2018 guidance of $2.25 to $2.40 per diluted share.
The guidance is based on the following assumptions:

Flat weather-adjusted retail deliveries

Normal hydro conditions for the remainder of the year, based on the
current hydro forecast

Wind generation based on five years of historical levels, or forecast
studies when historical data is not available

Normal thermal plant operations

Depreciation and amortization expense between $370 and $380 million

Operating and maintenance costs between $550 and $570 million

Third Quarter 2018 earnings call and webcast —
October 26, 2018

PGE will host a conference call with financial analysts and investors on
Friday, October 26, 2018, at 11 a.m. ET. The conference call will be
webcast live on the PGE website at investors.portlandgeneral.com.
A replay of the call will be available beginning at 2 p.m. ET on Friday,
October 26, 2018, through 2 p.m. ET on Friday, November 2, 2018.

Maria Pope, president and CEO; Jim Lobdell, senior vice president of
Finance, CFO, and treasurer; and Chris Liddle, director, Investor
Relations and Treasury, will participate in the call. Management will
respond to questions following formal comments.

The attached unaudited condensed consolidated statements of income and
comprehensive income, condensed consolidated balance sheets, and
condensed consolidated statements of cash flows, as well as the
supplemental operating statistics, are an integral part of this earnings
release.

About Portland General Electric Company

Portland General Electric (NYSE: POR) is a fully integrated energy
company based in Portland, Oregon, serving more than 885,000 customers
in 51 cities. For more than 125 years, PGE has been delivering safe,
affordable and reliable energy to Oregonians. Together with its
customers, PGE has the No. 1 voluntary renewable energy program in the
U.S. With approximately 2,900 employees across the state, PGE is
committed to helping its customers and the communities it serves build a
clean energy future. For more information, visit PortlandGeneral.com/CleanVision.

Safe Harbor Statement

Statements in this news release that relate to future plans, objectives,
expectations, performance, events and the like may constitute
“forward-looking statements” within the meaning of the Private
Securities Litigation Reform Act of 1995, Section 27A of the Securities
Act of 1933, as amended, and Section 21E of the Securities Exchange Act
of 1934, as amended. Forward-looking statements include statements
regarding earnings guidance; statements regarding future load, hydro
conditions, wind conditions and operating and maintenance costs;
statements concerning implementation of the company’s integrated
resource plan; statements concerning future compliance with regulations
limiting emissions from generation facilities and the costs to achieve
such compliance; as well as other statements containing words such as
“anticipates,” “believes,” “intends,” “estimates,” “promises,”
“expects,” “should,” “conditioned upon,” and similar expressions.
Investors are cautioned that any such forward-looking statements are
subject to risks and uncertainties, including reductions in demand for
electricity and the sale of excess energy during periods of low
wholesale market prices; operational risks relating to the company’s
generation facilities, including hydro conditions, wind conditions,
disruption of fuel supply, and unscheduled plant outages, which may
result in unanticipated operating, maintenance and repair costs, as well
as replacement power costs; the costs of compliance with environmental
laws and regulations, including those that govern emissions from thermal
power plants; changes in weather, hydroelectric and energy markets
conditions, which could affect the availability and cost of purchased
power and fuel; changes in capital market conditions, which could affect
the availability and cost of capital and result in delay or cancellation
of capital projects; failure to complete capital projects on schedule or
within budget, or the abandonment of capital projects which could result
in the company’s inability to recover project costs; the outcome of
various legal and regulatory proceedings; and general economic and
financial market conditions. As a result, actual results may differ
materially from those projected in the forward-looking statements. All
forward-looking statements included in this news release are based on
information available to the Company on the date hereof and such
statements speak only as of the date hereof. The Company assumes no
obligation to update any such forward-looking statement. Prospective
investors should also review the risks and uncertainties listed in the
company’s most recent annual report on form 10-K and the Company’s
reports on forms 8-K and 10-Q filed with the United States Securities
and Exchange Commission, including management’s discussion and analysis
of financial condition and results of operations and the risks described
therein from time to time.